Mirae Asset Financial Services, an NBFC (Non-Banking Financial Company) under the Mirae Asset Group, has launched a new loan facility. Customers who hold equity shares in their CDSL demat accounts can now get loans against these shares. Earlier, this facility was only available for NSDL account holders, but now it covers CDSL users too. CDSL is a major depository in India with over 18.5 crore accounts, making up about 80% of the market.

Previously, getting a loan against shares in CDSL was a slow and paper-heavy task. It often took 7 to 10 days for the process to finish because of manual checking. Now, the company has shifted the entire process to its website and mobile app. This digital shift means customers do not have to visit any branch or submit physical papers to get funds.

To apply, customers need to enter their 16-digit BOID (Beneficiary Owner Identification Number). This allows the system to securely see which shares are available in the demat account. The customer then selects which shares they want to pledge (keep as collateral). After verifying the request with an OTP (One-Time Password), the request goes to the Depository Participant for digital approval. Once approved, the loan account is created on the same day.

The loan amount offered ranges from a minimum of ₹25,000 to a maximum of ₹1 crore. The final amount depends on what kind of shares are being pledged. Mirae Asset has divided approved shares into four categories. These categories are decided based on market capitalization (total value of a company's shares) and price volatility (how much the price jumps up and down).

The LTV (Loan-to-Value) ratio is set between 30% and 45% depending on the share category. This means if you pledge shares worth ₹100, you might get a loan of ₹30 to ₹45. The interest rate is fixed at 10.25% per annum on the outstanding amount. A big benefit for customers is that there are no charges for prepaying or closing the loan before the tenure ends.

For Indian bankers and aspirants, this move shows the growing trend of LAS (Loan Against Securities) becoming a core digital product. It helps in reducing the turnaround time from weeks to just one day. By using automated pledging, NBFCs are able to grab market share from traditional banks that might still rely on manual processes for stock collateral.

Krishna Kanhaiya, CEO of Mirae Asset Financial Services, stated that the goal is to make borrowing simple and transparent. He noted that retail investors now have a smarter way to get cash without selling their long-term investments. As the demat market continues to grow, such digital lending products will likely become the standard for the entire Indian banking industry.